EXECUTIVE CHANGE IN CONTROL SEVERANCE AGREEMENT
Exhibit 10.1 - Executive Change in Control Severance Agreement (W. ▇▇▇▇
▇▇▇▇▇▇)
EXECUTIVE
CHANGE IN CONTROL
SEVERANCE
AGREEMENT
THIS
EXECUTIVE CHANGE IN CONTROL SEVERANCE AGREEMENT
(“Agreement”),
effective as of May 30, 2006 (the “Effective Date”), by and between Frontier Oil
Corporation, a Wyoming corporation (the “Company”), and W. ▇▇▇▇ ▇▇▇▇▇▇ (the
“Executive”).
WITNESSETH:
WHEREAS,
the
parties desire to enter into this Agreement; and
WHEREAS,
the
parties agree that on and after the Effective Date and prior to a Change in
Control (as defined below) the Executive is an “at will” employee of the
Company;
NOW,
THEREFORE,
in
consideration of the premises and covenants herein contained and other good,
valuable and binding consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:
1. Operation
of Agreement.
1.01 This
Agreement is effective as of the Effective Date. Unless terminated earlier
as
provided herein, this Agreement shall terminate on the third anniversary of
the
Effective Date; provided, however, if a Change in Control (as defined below)
of
the Company occurs during the term of this Agreement, the term of this Agreement
automatically shall terminate on the 180th day after the effective date of
the
Change in Control (the “CiC Date”), regardless of the length of the term
remaining as of the CiC Date, unless prior to such termination of this
Agreement, the Executive, in his sole discretion, gives written notice to the
Board of Directors of the Company that the term of this Agreement shall continue
until the third anniversary of the CiC Date. Notwithstanding any provision
of
this Agreement to the contrary, termination of this Agreement shall not alter
or
impair any rights or benefits of the Executive (or his estate or beneficiaries)
that have arisen under this Agreement on or prior to such termination, including
any contingent rights under paragraph 1.03.
1.02 For
the
purpose of this Agreement, the term “Change in Control” of the Company means the
occurrence of any one of the following on or after the Effective
Date:
(a) the
consummation and public notice of any transaction (including without limitation,
any merger, consolidation, tender offer, or exchange offer) the result of which
is that any individual, entity, group or “person” (as such term is used in
Sections 13(d)(3) and 14(d)(2), of the Securities Exchange Act of 1934 (the
“Exchange Act”)),
other
than the Company, a subsidiary or an employee benefit plan of
either, becomes
the “beneficial owner” (as such term is defined in Rule 13d-3 and Rule 13d-5
under the Exchange Act), directly or indirectly, of stock and/or securities
of
the Company representing 25% or more of the combined voting power of the
Company’s then outstanding voting securities,
(b) a
change
in the composition of the Board of Directors of the Company, as a result of
which fewer than a majority of the non-employee directors are Incumbent
Directors. “Incumbent Directors” shall mean non-employee directors who either
(A) are non-employee Directors as of the date the Plan is adopted, or (B) are
elected, or nominated for election, thereafter to the Board of Directors with
the affirmative votes of at least a majority of the Incumbent Directors at
the
time of such election or nomination, but “Incumbent Director” shall not include
an individual whose election or nomination is in connection with (i) an actual
or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Securities Exchange Act of 1934) or an
actual or threatened solicitation of proxies or consents by or on behalf of
a
Person other than the Board of Directors or (ii) a plan or agreement to replace
a majority of the then Incumbent Directors,
(c) the
consummation of the sale, lease, transfer, conveyance or other disposition
(including by merger or consolidation) in one or a series of related
transactions, of all or substantially all of the assets of the Company and
its
subsidiaries, taken as a whole (other
than to an entity wholly owned, directly or indirectly, by the Company), unless,
following such transaction all or substantially all of the persons who were
the
beneficial owners of the outstanding voting stock and securities of the Company
immediately prior to such transaction beneficially own, directly or indirectly,
more than 60% of, respectively, the then outstanding voting stock and securities
of the entity resulting from such transaction in substantially the same
proportions as immediately prior to such transaction,
or
(d) the
adoption of a plan relating to the liquidation or dissolution of the
Company.
1.03 Except
as
provided below, this Agreement automatically shall terminate in the event the
Executive ceases for any reason to be an employee of the Company and its
affiliates prior to a Change in Control; provided, however, if the Executive’s
employment is terminated during the six-month period preceding a Change in
Control that would have occurred during the term of this Agreement but for
the
termination of this Agreement upon the Executive’s termination of employment,
and if his termination would have qualified as a Termination of Employment
under
paragraph 7.02(a) or paragraph 7.02(b)(ii) (without regard to the 30/60 day
periods provided in paragraph 7.02(b)(ii)), then within 30 days of such Change
in Control the Company shall pay the Executive a lump sum amount equal to
three
times
the sum of (i) his annual Base Salary, (ii) the annual Target Bonus amount,
and
(iii) in recognition of the benefits and perquisites described in paragraphs
5.02 and 4.03, an amount equal to 30% of his annual Base Salary. Further, if
at
the time of his termination of employment the Executive held any equity-based
compensation awards that were forfeited by the Executive upon such termination,
the Company shall pay the Executive a lump sum amount equal to the sum of the
Fair Market Value of the shares subject to such forfeited awards less the sum
of
the exercise prices, if any, of such awards; provided, however, with respect
to
any such forfeited award that was a stock option, the Company, in its sole
discretion, may, in lieu of a cash payment with respect to such forfeited stock
option, reinstate and fully vest such stock option in which event such
reinstated stock option shall continue for the remainder of its full term
notwithstanding the Executive’s earlier termination of employment. Solely for
the purpose of this paragraph, Fair Market Value shall mean the reported closing
price of the common shares of the Company on the date of the Change in Control.
In addition, any stock options held by the Executive on the CiC Date shall
remain exercisable for the remainder of their terms as if the Executive’s
employment had not terminated.
1.04 Nothing
in this Agreement shall operate or be construed to create any right or duty
on
the part of the Company or the Executive to remain in the employment of the
Company for any period of time prior to the date of a Change in Control, each
reserving all rights to terminate the “at will” employment relationship of the
Executive at any time prior to a Change in Control.
2. Period
of Employment.
2.01 If
a
Change in Control occurs during the term of this Agreement, the Company agrees
to continue the Executive in its employ for the period set forth in paragraph
2.02 below (the “Period of Employment”) in the position and with the duties and
responsibilities set forth in Section 3 below, and upon the other terms and
conditions hereinafter provided.
2.02 Subject
to (i) the provisions of Section 6 below, (ii) the termination of the Executive
by the Company for Cause or (iii) a termination by the Executive other than
pursuant to Section 7.02(b), the Period of Employment shall continue until
the
180th day following the CiC Date unless the Executive elects to extend the
term
of the Agreement as provided in paragraph 1.01 in which event the Period of
Employment shall continue for a period of three
years
from the CiC Date.
3. Position,
Duties, Responsibilities.
3.01 During
the Period of Employment, the Executive shall continue to serve as the Executive
Vice President - Refining and Marketing Operations of the Company and continue
to have the duties and responsibilities of such position that the Executive
possessed immediately prior to the CiC Date.
3.02 During
the Period of Employment, the Executive shall also serve and continue to serve,
if and when elected and reelected, as an officer or director, or both, of any
affiliate of the Company.
3.03 Throughout
the Period of Employment, the Executive shall devote his full time and undivided
attention during normal business hours to the business and affairs of the
Company, except for reasonable vacations, illness or incapacity; however,
nothing in this Agreement shall preclude the Executive from (i) devoting
reasonable periods required for serving as a director or member of a committee
of any organization that does not involve a conflict of interest with the
interests of the Company, (ii) engaging in charitable and community activities,
and (iii) managing his personal investments, provided that such activities
do
not materially interfere with the regular performance of his duties and
responsibilities under this Agreement. The Board of Directors of the Company
shall give the Executive written notice of any such activities that it believes
materially interfere with his duties hereunder and provide the Executive with
a
reasonable period of time to correct such activities.
3.04 During
the Period of Employment, the Executive shall be based at the principal offices
of the Company maintained in Denver, CO. The Executive shall not be required
to
be absent from the office on travel status or otherwise more than a total of
60
business days in any calendar year nor more than 20 consecutive days at any
one
time.
4. Compensation,
Compensation Plans, Perquisites.
4.01 During
the Period of Employment, the Executive shall be:
(a) paid
an
annual base salary at no less than the rate in effect immediately prior to
the
CiC Date, with increases (if any) as shall be made from time to time thereafter
in accordance with the Company’s regular salary administration practices for key
executives (“Base Salary”); and
(b) provided
an annual bonus opportunity in an amount no less than 60% of his Base Salary
(“Target Bonus”).
Any
increase in Base Salary or the Target Bonus or other compensation shall in
no
way diminish any other obligation of the Company under this
Agreement.
4.02 During
the Period of Employment, the Executive shall continue to be eligible to
participate in the Company’s equity-based compensation plans and all other
compensation and incentive plans and programs in which the Executive
participates immediately prior to the CiC Date (or equivalent successor plans
that may be adopted by the Company), including, without limitation, an annual
bonus plan, and the Executive shall be provided thereunder with at least the
same reward opportunities in the aggregate that were provided to the Executive
immediately prior to the CiC Date, unless there has been a material diminution
in the Executive’s performance or duties. Nothing in this Agreement (i) shall be
construed as requiring the Executive to receive during the Period of Employment
payments or benefits under such equity, compensation and incentive plans or
programs that are at least equal to those the Executive received thereunder
immediately prior to the CiC Date, it being the intent of the parties that
the
payments and benefits provided thereunder shall be subject to being earned
by
the Executive under the then existing criteria for awards under such plans
and
programs, which criteria shall be based on substantially the same performance
standards and criteria used by the Company immediately prior to the CiC Date,
or
(ii) shall preclude improvement of any reward opportunities in such plans or
other plans or programs in accordance with the practice of the
Company.
4.03 During
the Period of Employment, the Executive shall be entitled to perquisites,
including, without limitation, an office, secretarial and clerical staff, and
to
fringe benefits, including, without limitation, the payment or reimbursement
of
club dues, in each case at least equal to those provided to the Executive
immediately prior to the CiC Date, as well as to reimbursement, upon proper
accounting, of reasonable expenses and disbursements incurred by him in the
course of his duties.
5. Employee
Benefit Plans.
5.01 The
compensation and other matters provided for in Section 4 above are in addition
to the benefits provided for in this Section 5.
5.02 During
the Period of Employment, the Executive, his dependents and eligible
beneficiaries shall be entitled to all coverage, participation, payments and
benefits, including service credit for benefits, to which officers of the
Company, their dependents and beneficiaries are entitled under the terms of the
employee benefit plans and practices of the Company in effect immediately prior
to the CiC Date, including, without limitation, the Company’s qualified and
nonqualified retirement programs, 401(k) and profit sharing plans, the Frontier
Oil Corporation Executive Life Insurance Plan, group life insurance plans,
accidental death and dismemberment insurance, business travel insurance, long
term disability, medical, dental and health and other welfare benefit plans
and
any successor benefit plans and practices of the Company and its affiliates
for
which officers, their dependents and beneficiaries are eligible.
5.03 Nothing
in this Agreement shall preclude the Company during the Period of Employment
from amending or terminating any perquisites provided to the Executive or any
of
its employee benefit plans or practices in which the Executive participates,
provided that in the event of any such amendment or termination, the Executive
shall be entitled during the remaining Period of Employment to perquisites
and
benefits (and service credit for benefits) in one or more successor plans or
arrangements that are at least as comparable in the aggregate to those he
received immediately prior to the CiC Date.
6. Effect
of Death or Disability.
6.01 In
the
event of the death of the Executive during the Period of Employment, the legal
representative of the Executive’s estate shall be entitled to receive a lump sum
payment equal to the sum of (i) the Executive’s annual Base Salary and annual
Target Bonus amount and (ii) the Fair Market Value of the shares subject to
any
equity-based compensation awards forfeited as a result of the Executive’s death,
less the exercise price, if any, of such forfeited awards. Such payment shall
be
made as soon as reasonably practical following the Executive’s death and will be
without prejudice to any other payments or benefits, if any, due hereunder
in
respect of the Executive’s death or pursuant to any other plans, agreements or
arrangements with the Company.
6.02 The
term
“Disability,” as used in this Agreement, means an illness or accident which
prevents the Executive from performing his duties under this Agreement. In
the
event of the Disability of the Executive during the Period of Employment, the
Executive shall continue to receive the full compensation, benefits and
perquisites provided for in this Agreement for the period of such Disability
or
the balance of the Period of Employment, whichever is less, reduced by any
other
payments made to the Executive pursuant to any disability, illness or accident
plan of the Company or any affiliate.
7. Termination
of Employment.
7.01 In
the
event of a “Termination of Employment,” as defined in paragraph 7.02 below,
during the Period of Employment,
(a) the
Company shall pay to the Executive (or his dependents, beneficiaries or estate
as the case may be), within 30 days of his Termination of Employment, a lump
sum
amount equal to (1) three times
the
sum of (i) his annual Base Salary, (ii) the annual Target Bonus amount, and
(iii) in recognition of the benefits and perquisites described in paragraphs
5.02 and 4.03, an amount equal to 30% of his annual Base Salary minus
(2)
the amount of (i) any Base Salary and Target Bonus amounts that have been paid
to the Executive for services performed during the Period of Employment and
(ii)
30% of his Base Salary multiplied by a fraction, the numerator of which is
the
number of days in the Period of Employment that have lapsed and the denominator
of which is the total number of days in the Period of Employment if it continued
for its full term,
(b) all
outstanding stock options and other equity-based compensation awards held by
the
Executive at the time of his Termination of Employment (without regard as to
when granted) automatically shall vest in full, all performance periods shall
end with all performance goals deemed met at the highest level and, if
applicable, such awards shall remain exercisable for the remainder of their
terms as if the Executive’s employment had not terminated, unless such extension
or acceleration of payment would subject the award to the 20% additional tax
under Section 409A of the Internal Revenue Code in which event the exercise
period or payment for such award shall be extended until payment would not
subject the award to such penalty tax,
(c) if
Section 409A of the Internal Revenue Code would subject the Executive to the
additional 20% tax provided thereunder with respect to any severance amounts
paid under this Agreement to the Executive by reason of the Executive being
a
“specified employee,” as defined in Section 409A, such payment shall be deferred
six-months or, if earlier, the date such payment may be made without being
subject to such additional tax under Section 409A, and in all events shall
be
paid within 10 days of the date it is no longer subject to the required
deferral, and for such deferral period until paid the amount shall bear interest
as provided in paragraph 7.01(d), and
(d) any
delay
by the Company in paying any amount due the Executive under this Agreement
or
deferral pursuant to paragraph (c) above shall bear interest at the maximum
nonusurious rate from the date such payment was due (disregarding for this
purpose any deferral pursuant to paragraph (c) above) until paid.
7.02 “Termination
of Employment,” for the purpose of this Agreement, means:
(a) a
termination of the employment of the Executive by the Company and its affiliates
during the Period of Employment for any reason other than for (i) Cause, as
defined in paragraph 7.03 below, or (ii) Disability; or
(b) a
termination by the Executive of his employment with the Company and its
affiliates during the Period of Employment upon the occurrence of any of the
following events:
(i) the
failure to elect or reelect the Executive to, or removal of the Executive from,
the offices set forth in paragraph 3.01 above,
(ii) a
significant change in the nature or scope of the authorities, powers, functions
or duties of the Executive as contemplated by paragraph 3.01 above, or a
reduction in the compensation under paragraph 4.01(a) or the perquisites or
benefits provided under this Agreement, and such change and/or reduction is
not
remedied within 30 days after receipt by the Company of written notice from
the
Executive;
provided, however, such written notice must be given by the Executive within
60
days of the date the Executive knows, or should reasonably have known, of such
change or reduction and if notice is not given by the Executive within such
period, he shall be deemed to have waived his rights with respect to such change
or reduction constituting a basis for his Termination of
Employment,
(iii) a
determination by the Executive made in good faith that as a result of the Change
in Control of the Company and a change in circumstances thereafter that
significantly affects his position, he is unable to carry out the authorities,
powers, functions or duties attached to his position as contemplated by Section
3 of this Agreement,
and
such change in circumstance is not remedied within 30 days after receipt by
the
Company of written notice from the Executive,
(iv) a
breach
by the Company of any material
provision of this Agreement that is not remedied within 30 days after receipt
by
the Company of written notice from the Executive, or
(v) the
failure of a successor to assume all duties and obligations of the Company
under
this Agreement as provided in paragraph 10.10; or
(c) a
termination by the Executive of his employment with the Company and its
affiliates during the 180-day period following the CiC Date for any reason
other
than his death or a disability that entitles the Executive to long-term
disability benefits under a disability plan of the Company or its affiliates,
provided the Executive has not already given written notice of his election
pursuant to paragraph 1.01 to extend the term of the Agreement to the third
anniversary of the CiC Date.
An
election by the Executive to terminate his employment given under the provisions
of this paragraph 7.02(b) or (c) shall not be deemed a voluntary termination
of
employment by the Executive for the purpose of this Agreement or any plan or
practice of the Company.
7.03 For
purposes of this Agreement, the termination of the Executive’s employment shall
be deemed to have been for “Cause” only if:
(a) termination
of his employment shall have been the result of an act or acts of dishonesty
on
the part of the Executive constituting a felony and resulting or intended to
result directly or indirectly in gain or personal enrichment at the expense
of
the Company; or
(b) there
has
been a breach by the Executive during the Period of Employment of the provisions
of paragraph 3.03 above, relating to the time to be devoted to the affairs
of
the Company, or of paragraph 8.01, relating to confidential information, and
such breach results in demonstrably material injury to the Company and with
respect to any alleged breach of paragraph 3.03 or of paragraph 8.01 hereof,
the
Executive after notice and an opportunity to be heard either shall have failed
to take all reasonable steps to that end within 30 days from his receipt of
written notice by the Company pursuant to resolution duly adopted by a majority
of the members of the Board of Directors of the Company; and provided that
thereafter
(c) there
shall have been delivered to the Executive a certified copy of a resolution
of
the Board of Directors of the Company adopted by the affirmative vote of not
less than three-fourths of the entire membership of the Board of Directors
called and held for that purpose and at which the Executive was given an
opportunity to be heard, finding that the Executive was guilty of conduct set
forth in subparagraphs (a) or (b) above, specifying the particulars thereof
in
detail.
Anything
in this paragraph 7.03 or elsewhere in this Agreement to the contrary
notwithstanding, the employment of the Executive shall in no event be considered
to have been terminated by the Company for Cause if termination of his
employment took place (a) as the result of bad judgment or negligence on the
part of the Executive, or (b) as the result of an act or omission without the
intent of gaining therefrom, directly or indirectly, a profit to which the
Executive was not legally entitled, or (c) because of an act or omission
believed by the Executive in good faith to have been in or not opposed to the
interest of the Company, or (d) for any act or omission in respect of which
a
determination could properly be made that the Executive met the applicable
standard of conduct prescribed for indemnification or reimbursement or payment
of expenses under the Policies of the Company or the laws of the State of
Wyoming or the directors’ and officers’ liability insurance of the Company, in
each case as in effect at the time of such act or omission, or (e) as the result
of an act or omission that occurred or began more than twelve calendar months
prior to the Executive’s having been given notice of his Termination of
Employment for such act or omission, unless the commission or commencement
of
such act or such omission could not have been reasonably known to a member
of
the Board of Directors of the Company (other than the Executive, if he is then
a
member of the Board of Directors) in the twelve month period from the date
of
the commission or commencement of such act or such omission.
7.04 In
the
event that the Executive’s employment shall be terminated by the Company during
the Period of Employment and such termination is alleged to be for Cause, or
the
Executive’s right to terminate his employment under paragraph 7.02(b) above
shall be questioned by the Company or for any reason, the Executive shall have
the right, in addition to all other rights and remedies provided by law, at
his
election either to seek arbitration in Houston, ▇▇▇▇▇▇ County, Texas, under
the
rules of the American Arbitration Association by serving a notice to arbitrate
upon the Company or to institute a judicial proceeding in Houston, ▇▇▇▇▇▇
County, Texas, in either case within 90 days after having received written
notice that his Termination of Employment is subject to question or that the
Company is withholding or proposes to withhold any payments or provision of
benefits or within such longer period as may reasonably be necessary for the
Executive to take action in the event that his illness or incapacity should
preclude his taking such action within such 90-day period.
7.05 Each
party hereto hereby irrevocably submits to the exclusive jurisdiction of the
state and federal courts in Houston, ▇▇▇▇▇▇ County, Texas, for the purposes
of
any proceeding arising out of this Agreement.
8. Confidential
Information
8.01 The
Executive agrees not to disclose, either while in the Company’s employ or at any
time thereafter, to any person not employed by the Company, or not engaged
to
render services to the Company, any confidential information obtained by him
while in the employ of the Company, including, without limitation, any of the
Company’s inventions, processes, methods of distribution or customers or trade
secrets; provided, however, that this provision shall not preclude the Executive
from use or disclosure of information known generally to the public or of
information not considered confidential by persons engaged in the business
conducted by the Company or from disclosure required by law or Court
order.
8.02 The
Executive also agrees that upon leaving the Company’s employ he will not take
with him, without the prior written consent of an officer authorized to act
in
the matter by the Board of Directors of the Company, any drawing, blueprint,
specification or other document of the Company and its affiliates, which is
of a
confidential nature relating to the Company and its affiliates, or without
limitation, relating to its or their methods of distribution, or any description
of any formulae or secret processes.
9. Notices
All
notices, requests, demands and other communications provided for by this
Agreement shall be deemed to have been duly given if and when mailed in the
continental United States by registered or certified mail, return receipt
requested, postage prepaid, or personally delivered or sent by telex or other
telegraphic means to the party entitled thereto at the address stated below
or
to such changed address as the addressee may have given by a similar
notice:
To
the
Company: Frontier
Oil Corporation
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▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇
▇▇▇
▇▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇▇▇
Attn:
General Counsel
To
the
Executive: W.
▇▇▇▇
▇▇▇▇▇▇
▇▇▇▇
▇.
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇,
▇▇ ▇▇▇▇▇-▇▇▇▇
Ph
303-714-0100
10. General
Provisions
10.01 There
shall be no right of set-off, mitigation or counterclaim in respect of any
claim, debt or obligation, against any payments to the Executive, his
dependents, beneficiaries or estate provided for in this Agreement.
10.02 The
Company and the Executive recognize that each party will have no adequate remedy
at law for breach by the other of any of the agreements contained herein and,
in
the event of any such breach, the Company and the Executive hereby agree and
consent that the other shall be entitled to a decree of specific performance,
mandamus or other appropriate remedy to enforce performance of such
agreements.
10.03 No
right
or interest or in any payments shall be assignable by the Executive; provided,
however, that this provision shall not preclude him from designating one or
more
beneficiaries to receive any amount that may be payable after his death and
shall not preclude the legal representative of his estate from assigning any
right hereunder to the person or persons entitled thereto under his will or,
in
the case of intestacy, to the person or persons entitled thereto under the
laws
of intestacy applicable to his estate. The term “beneficiaries” as used in this
Agreement shall mean a beneficiary or beneficiaries so designated to receive
any
such amount or, if no beneficiary has been so designated, the legal
representative of the Executive’s estate.
10.04 No
right,
benefit or interest hereunder, shall be subject to anticipation, alienation,
sale, assignment, encumbrance, charge, pledge, hypothecation, or set-off in
respect of any claim, debt or obligation, or to execution, attachment, levy
or
similar process, or assignment by operation of law. Any attempt, voluntary
or
involuntary, to effect any action specified in the immediately preceding
sentence shall, to the full extent permitted by law, be null, void and of no
effect.
10.05 In
the
event of the Executive’s death or a judicial determination of his incompetence,
reference in this Agreement to the Executive shall be deemed, where appropriate,
to his beneficiary or beneficiaries. This Agreement shall inure to the benefit
of and be enforceable by Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.
10.06 The
titles to sections in this Agreement are intended solely for convenience and
no
provision of this Agreement is to be construed by reference to the title of
any
section.
10.07 No
provision of this Agreement may be amended, modified or waived unless such
amendment, modification or waiver shall be authorized by the Board of Directors
of the Company or any authorized committee of the Board of Directors and shall
be agreed to in writing, signed by the Executive and by an officer of the
Company thereunto duly authorized.
10.08
Except
as otherwise specifically provided in this Agreement, no waiver by either party
hereto of any breach by the other party hereto of any condition or provision
of
this Agreement to be performed by such other party shall be deemed a waiver
of a
subsequent breach of such condition or provision or a waiver of a similar or
dissimilar provision or condition at the same or at any prior or subsequent
time.
10.09 In
the
event that any provision or portion of this Agreement shall be determined to
be
invalid or unenforceable for any reason, the remaining provisions and portions
of this Agreement shall be unaffected thereby and shall remain in full force
and
effect to the fullest extent permitted by law.
10.10 Except
in
the case of a merger involving the Company with respect to which under
applicable law the surviving corporation of such merger will be obligated under
this Agreement in the same manner and to the same extent as the Company would
have been required if no such merger had taken place, the Company will require
any successor, by purchase or otherwise, to all or substantially all of the
business and/or assets of the Company, to execute an agreement whereby such
successor expressly assumes and agrees to perform this Agreement in the same
manner and to the same extent as the Company would have been required if no
such
succession had taken place and expressly agrees that the Executive may enforce
this Agreement against such successor. Failure of the Company to obtain any
such
required agreement and to deliver such agreement to the Executive prior to
the
effectiveness of any such succession shall be a material breach of this
Agreement and shall entitle the Executive to payment from the Company in the
same amount and on the same terms as the Executive would be entitled hereunder
if the Executive had incurred a Termination of Employment on the effective
date
of such succession (without regard to whether the employment of the Executive
terminates on such effective date or has terminated after such effective date).
However, in no event shall the Executive be entitled to payment under both
paragraph 7.01 and this paragraph 10.10. As used in this Agreement, “Company”
shall mean the Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid that executes and delivers the agreement provided
for
in this paragraph 10.10 or which otherwise becomes bound by all the terms and
provisions of this Agreement by operation of law.
10.11 This
Agreement shall be governed by and construed in accordance with the laws of
the
State of Texas.
10.12 To
the
extent that any payment made or benefit provided to the Executive pursuant
to
the terms of this Agreement or otherwise results in the Executive being subject
to any income, excise, or other tax at a rate above the rate ordinarily
applicable to wages and salaries paid in the ordinary course of business
(“Penalty Tax”), whether as a result of the provisions of Sections 280G, 4999 or
409A of the Internal Revenue Code of 1986, as amended, or any similar or
analogous provisions of the Internal Revenue Code or any other statute, whether
adopted subsequent to the date hereof or otherwise, then the amount due the
Executive under this Agreement shall be increased by an amount (the “Additional
Amount”) such that the net amount received by the Executive after paying any
applicable Penalty Tax (including any interest or penalties thereon) and any
federal, state or other taxes on such Additional Amount, shall be equal to
the
amount that the Executive would have received if such Penalty Tax were not
applicable. Such Additional Amount shall be paid to the Executive immediately
prior to such time or times that the Penalty Tax is due and in no event later
than one day after such due date.
10.13 To
the
extent the Executive prevails in whole or in part in any matter contesting
the
validity or enforceability of this Agreement or the amount of benefit claimed
by
the Executive hereunder, the Company shall pay all legal fees and expenses
that
the Executive incurs as a result of or in connection with such matter. The
Executive shall not be required to mitigate the amount of any payment provided
for in this Agreement by seeking other employment or otherwise and amounts
received from other employment or otherwise by the Executive shall not be
recoupable by the Company against the amounts paid or payable to the Executive
pursuant to the terms of this Agreement.
10.14 Nothing
in this Agreement shall limit or otherwise adversely effect such rights as
the
Executive may have under the terms of any equity award, employee benefit plan,
incentive compensation arrangement or other agreement with the Company or any
of
its affiliates.
10.15 The
Company shall withhold from all payments and benefits provided under this
Agreement all taxes required to be withheld by the Company by applicable
law.
IN
WITNESS WHEREOF,
the
parties hereto have executed this Agreement effective for all purposes as of
the
Effective Date.
FRONTIER
OIL CORPORATION
By:
Name:
▇▇▇▇▇ ▇. ▇▇▇▇▇
Title:
Chairman, President & Chief
Executive
Officer
EXECUTIVE
W.
▇▇▇▇
▇▇▇▇▇▇